Some strategists also argue that the financial sector may be a good area to look at this time around, given the potential for growth in a rising rate environment, along with potential tax and regulatory changes under the Donald Trump administration.

Some bond traders expect the Fed to raise rates again later this year which could give XLF and rival ETFs another boost. Additionally, market observers are forecasting three rate hikes by the Fed in 2018.

“In terms of EPS estimate revisions, 38 of the 65 companies (58%) in the S&P 500 Financials sector have seen an increase in their mean EPS estimate for 2017 since December 31. Three of the four sub-industries in the Financials sector with the largest percentages of companies that have recorded an increase in their mean EPS estimate for 2017 (since December 31) are bank-related sub-industries: Investment Banking & Brokerage, Diversified Banks, and Regional Banks,” according to FactSet.

For more information on the financial sector, visit our financial category.